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Software Defined Data Center (SDDC) Market Size to hit $235bn by 2026

  • Published Date: December 23, 2019

Software Defined Data Center Market size is anticipated to cross USD 235 billion by 2026; according to a new research report by Global Market Insights Inc.

The dynamic needs of big data, mobility, and social business are driving the paradigm shift in data center deployment. Enterprises across the end-user sectors are adopting technologies to pool resources that include storage, network & computing, reducing capital expenditure, offering enhanced IT agility, and minimizing IT infrastructure complexity. Data center virtualization allows IT companies to create, move, and delete workloads from across and within the data center, using automated process & software tools that reduce downtime for the organization. It helps organizations to operate, deploy, manage, and update applications while ensuring business continuity through a secure business process. This ensures agility and cost-effectiveness to organizations. These key factors are anticipated to increase its adoption among organizations, propelling the software defined data center (SDDC) market size.

Streamlined and automated data center operations will propel the market demand

The growing need to reduce operational expenditure & capital expenditure and technical & operational inefficiencies by eliminating hardware expenses is proliferating the SDDC market revenue. The organizations are adopting it to streamline and automate several data center operations, enhancing their technical & operational efficiencies. SDDC software is deeply integrated into the virtualized network, compute, and storage components of the infrastructure. It leverages machine learning capabilities, predictive analytics, and software defined infrastructures to offer real-time issue identification and resolution. This will enhance the business ability of the company, helping them to react competitively to changing technological landscapes and market conditions.

Browse key industry insights spread across 300 pages with 600 market data tables and 27 figures & charts from the report, “Software Defined Data Center (SDDC) Market Size By Solution (Software defined Compute (SDC) [Hardware, Software, Services {Managed Services, Professional Services}], Software defined Networking (SDN) [Hardware, Software, Services {Managed Services, Professional Services}], Software defined Storage (SDS) [Hardware, Software, Services {Managed Services, Professional Services}]), By Organization Size (SMEs, Large Enterprises) By End-Use (Enterprise [BFSI, Government, Healthcare, Manufacturing, IT Enabled Services (ITeS), Retail & E-Commerce], Telecom Service Providers, Cloud Service Providers), Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2020 – 2026” in detail along with the table of contents:

SDDC caters to the growing security concerns in the data center infrastructure

software defined data center offers virtualization of security services and networks. It provides isolation to the virtual network, which protects against attacks initiated by workloads in any virtual network. This enhances security, compliances, and offers real-time issue identification and resolution. It enables end-user firms to deploy & integrate network virtualization which will safeguard critical data. The rapid adoption of hybrid cloud among companies is further propelling the software defined data center market growth.

Growth in organizational & consumer data is driving the SDDC market demand for solutions from IT & telecom users

Rapid digitization and the proliferation of smartphones are driving the retail & e-commerce industry. An increasing demand for customer satisfaction and customer engagement from retail & e-commerce firms is being witnessed. Its deployment helps organizations to reduce latency, improve resiliency, and enhance agility, resilience & security, aiding retail and e-commerce firms to reduce operational costs & lower provisioning time & errors. The deployment of software defined solutions allows clients to focus on the cost and quality optimization by commoditizing the underlying hardware such as compute, network, and storage, driving the market demand.

Increase in the construction of mega data centers and government initiatives for digitalization driving the APAC market share

In 2019, the Asia Pacific software defined data center market accounted for over 15% of the industry share and will witness high growth owing to rapid development of broadband & internet infrastructure. Rapid increase in the number of start-ups in Asia Pacific due to steady economic growth is contributing to data center market growth. Prominent global market players are collaborating with regional players to implement software defined data center in the region. For instance, in September 2016, VMware, Inc. and Telekomunikasi Indonesia International Pte Ltd. (Telin Singapore) collaborated to build SDDC based on VMware Validated Designs, Telin-3. This collaboration helped Vmware enter the Asia Pacific industry. In August 2019, Equinix, Inc. announced its first International Business Exchange (IBX) data center in Seoul, South Korea. SL1 is expected to provide Equinix Cloud Exchange Fabric (ECX Fabric), a SDDC solution that will enable businesses to connect between its own distributed infrastructures. The company is forecasting that by Q1 2020, it will provide the ECX Fabric solution to over 1,600 businesses. This will help Equinix increase its market presence in Asia Pacific region.

Industry players are adopting collaboration strategies to remain competitive in the market

Prominent industry leaders operating in SDDC market include VMware, Inc., SUSE, Oracle Corporation, Nutanix, NetApp, Inc., NEC Corporation of America (NEC Corporation), Microsoft Corporation, Juniper Networks, Inc., IBM Corporation, Huawei Technologies, Co., Ltd., HP Enterprises, Fujitsu Ltd., and Cisco Systems Inc. These firms are focusing on strategic alliances to sustain in a highly competitive market. For instance, in August 2019, Big Switch Networks announced its collaboration with VMware to integrate its solutions with VMware’s software defined data center portfolio, offering enhanced visibility, improved troubleshooting capabilities, and efficient automation. The collaboration is expected to increase the global market share for Vmware.

Authors: Ankita Bhutani, Saloni Gankar

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